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hongqing Ericsson TeleChongqing Ericsson Tech.Ericsson RD center ShanghaiEricsson Consulting ShanghaiDalian Ericsson1994 1995 1997 1995 1992 1997 1998 1998 1997 1999Product offering? PBX MD 110? Mobile handset? Mobile base station? Electronic ponents? Tele equipment service? Mobile handset? Mobile infrastructure services? GSM900/1800 AXE 10? SDH transmission systems? Digital microwave? Mobile system marketing sales and service? Software application? Consulting service for wireless and fixed line operators? Technical service55% with Beijing Cable Tele49% with PTIC, Beijing Tele Components,Beijing Tele Equipment, Yun Shing80% with Shanghai Simtek56% with GD PTA Guangdong Machinery Import and Export55% with Nanjing Radio Factory, HK Yun Shing % with WRILongxing Investment Changqing Southwest Wireless tele 100% 100% 100%65% with Nanjing Panda24SAMSUNG010605BJkickoff2ERICSSON USES JV PARTNERS TO ENTER THE MARKET AND ITS OWN SALES FORCE TO SELL CORE PRODUCTSInfluence ? Ericsson corporate focused on top to top relations? Joint venture partners help to gain local customer accessPartnership structure role? Ericsson China (10 joint ventures and 4 WFOEs)? Holding pany aims to coordinate all activities in China? WFOE for software RD in China? Limited technology transfer to China – heavily import dependent? Service joint ventures are cost centersRoute to market? Ericsson’s sales force (based in the holding pany) sells core products (switching and transmission)? Joint venture sales force sells small and standalone products? Wireless products sold through distributorsKey messages? Uses joint venture partners to enter the market, then established holding pany in 1994 to better manage local operations? Use its bettertrained own sales force to sell core products。 delivers coordination to pete in “solution” sales? Believes that localization is key。 established specially monitored career track for promising Chinese managers to enhance retention25FINANCIAL PERFORMANCE1. Background information? Location? Registered capital? Managementteam? Equitystructure? Starting year? Number of employees? Era analysis4. Value chain strategy5. Organization and ownership 6. Financial performance? Focus on– Marketing, advertising and promotion– Distribution (channel and sales force)? Organization structure? Ownership structure? Sales ? Profit 2. Strategy 3. Product/market? Mission? Vision? Corporate strategy? Market position? Key product offerings? Key customers? Value proposition? Geographic focus? Pricing26?Although Ericsson’s consumer products, . mobile handsets grew in revenue by 28% in 2023, the profit was negative at SEK –16 billion. The operating profit margin for mobile handset is –29% globally in 2023?Ericsson’s work products grew in revenue by 29% in 2023, and in profit by 65%. The operating profit margin for work product is 17% globally in 2023?To maintain its leadership position in work products, Ericsson may bee a niche market player in mobile handsetsKEY MESSAGES FINANCIAL PERFORMANCE27ERICSSON SAW NEGATIVE PROFIT FOR ITS MOBILE HANDSETS IN 2023SEK billionsRevenues globally1999 2023Network operators service providersConsumer* productsEnterprise solutionsOthers1999 2023Consumer* productsNetwork operators service providersEnterprise solutionsOthers2019215274CAGR=27%CAGR= 5%Operating profit globally * Consumer products are mainly mobile handsetsSource:Ericsson press releases 28SAMSUNG010605BJkickoff2